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Individual Income Tax (APIT) Calculator Sri Lanka 2025/26

Calculate your personal income tax using the latest 2025/26 APIT slabs — tax-free threshold now Rs. 1,800,000/yr. Supports employment income, rental income, business income, and custom deductions. Free, instant, no login required.

✅ No Login Required 🆕 Updated Apr 2025 🇱🇰 2025/26 APIT Slabs 📊 Multiple Income Sources 💰 Effective Tax Rate 🎁 100% Free
⚡ Updated for 2025/26: Tax-free threshold increased to Rs. 1,800,000/yr (Rs. 150,000/month) · 12% slab removed · New slab bands effective from April 1, 2025 per IRD Circular & Inland Revenue (Amendment) Act No. 02 of 2025.
Assessment Year & Personal Details
Employment Income
💼 Salary & Wages
Total gross employment income including salary, bonuses and taxable allowances.
Primary
Other Income Sources (annual amounts)
Tax Deductions & Reliefs
📝 Qualifying Deductions
Deductions reduce your taxable income — e.g. EPF contributions, life insurance premiums, approved donations.
Tax-Reducing
Auto-deduct EPF Employee 8% Deducted from employment gross for taxable income
APIT Tax Slabs Reference
Results
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Enter your income details
Fill in your salary or income on the left and click Calculate Income Tax to see your full tax breakdown — effective rate, monthly APIT, slab analysis and more.
Sri Lanka APIT Individual Income Tax Slabs — 2025/26 vs 2024/25
Annual Taxable Income (LKR) 2025/26 Rate 2024/25 Rate Cumulative Tax (2025/26)
Rs. 0 – 1,800,000 RAISED0% (Personal Relief)0% (up to 1.2M)Rs. 0
Rs. 1,800,001 – 2,800,0006%6% (1.2M–1.8M)Rs. 60,000
Rs. 2,800,001 – 3,300,00018%12% removed REMOVEDRs. 150,000
Rs. 3,300,001 – 3,800,00024%18%Rs. 270,000
Rs. 3,800,001 – 4,300,00030%24%Rs. 420,000
Rs. 4,300,001 – 4,800,000 (band)36%30%Rs. 600,000 +
Above Rs. 4,800,00036%36%Progressive

Source: IRD Sri Lanka — Inland Revenue (Amendment) Act No. 02 of 2025, effective April 1, 2025. Monthly tax-free limit: Rs. 150,000 (previously Rs. 100,000).

What Changed in 2025/26?

Effective April 1, 2025, the personal relief increased from Rs. 1.2M to Rs. 1.8M per year (Rs. 150,000/month). The 12% slab was eliminated entirely. Slab band widths changed from 600K increments to 1,000,000 / 500,000 / 500,000 / 500,000 giving greater relief to middle-income earners. APIT deduction remains mandatory for all employees.

APIT vs PAYE in Sri Lanka

APIT (Advance Personal Income Tax) replaced the old PAYE system. Both are employer-withheld monthly tax deductions remitted to IRD, but APIT introduced more granular rules for lump-sum payments, secondary employment, and non-citizen non-resident employees. From April 1, 2025, APIT deductions are compulsory regardless of employee consent.

Effective vs Marginal Tax Rate

Your marginal rate is the rate applied to your last rupee of income. Your effective rate is the overall percentage of total income paid as tax. Because Sri Lanka uses progressive slabs — and a large tax-free zone of Rs. 1.8M — your effective rate is always significantly lower than your marginal rate.

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Frequently Asked Questions — Sri Lanka Income Tax 2025/26

What is the tax-free threshold in Sri Lanka for 2025/26?

From April 1, 2025, the personal relief (tax-free threshold) is Rs. 1,800,000 per year (Rs. 150,000 per month), increased from the previous Rs. 1,200,000. If your total taxable income is below Rs. 1.8 million, you pay zero income tax.

What are the APIT income tax slabs in Sri Lanka for 2025/26?

The 2025/26 progressive slabs (after the Rs. 1.8M personal relief): Rs. 1,800,001–2,800,000 at 6%; Rs. 2,800,001–3,300,000 at 18%; Rs. 3,300,001–3,800,000 at 24%; Rs. 3,800,001–4,300,000 at 30%; above Rs. 4,300,000 at 36%. Note the 12% band was removed entirely.

What changed between 2024/25 and 2025/26 APIT?

Three key changes: (1) The tax-free personal relief rose from Rs. 1.2M to Rs. 1.8M per year. (2) The 12% tax slab was completely removed. (3) The first taxable slab band widened from Rs. 600,000 to Rs. 1,000,000, meaning more income is taxed at just 6%. These changes were introduced by Inland Revenue (Amendment) Act No. 02 of 2025, effective April 1, 2025.

What deductions can reduce my taxable income in Sri Lanka?

Key deductions include the EPF employee contribution (8% of gross salary), life insurance and health insurance premiums up to approved limits, donations to approved charities, and qualifying investment amounts. This calculator lets you enter custom deduction amounts to see their impact on your tax liability.

Is APIT deduction mandatory from April 2025?

Yes. From April 1, 2025, APIT deductions are compulsory for all resident employees and non-resident employees who are citizens of Sri Lanka, regardless of employee consent. Employers must deduct and remit APIT to the IRD by the 15th of the following month.

Do I need to file a tax return in Sri Lanka?

Individuals with annual income exceeding Rs. 1,800,000 (2025/26), those with income from multiple sources, those with rental or business income, and non-residents are generally required to file an annual income tax return with the IRD Sri Lanka. Consult the IRD website or a registered tax consultant for your specific situation.